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Essay on Internet Banking


❶It accepts deposits from the public and pays interest to the public for their deposits and lends this deposit to those who need it and charges interest from them.

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What happened?

Initially introduced by the foreign banks, the same concept in new increasingly adopted by public sector banks and also the private sector banks.

Under this concept of banking, bank customers who have an account with any select branch can easily operate his account from different designated branches on the bank spread throughout the country.

Under this system, a customer can avail cash withdrawal, cash deposit, transfer of funds, inter-city and intra-city transactions, collection of draft and cheques etc. Core banking concept has improved the standard of the banking services with the help of modern technology.

In present times, most of the public sector banks have already adopted this concept and started extending these facilities to its customers gradually by including more and more of its important branches under this category. In order to make their bank account safe, one should follow certain security precautions. Customer should never share personal information like PIN number, passwords etc.

It is important that documents that contain confidential information are safeguarded. PIN or password should be changed immediately and memorized before destroying the mailers. Customers are also advised not to provide sensitive account-related information over unsecured e-mails or over the phone. He must take simple precautions like changing the ATM, PIN and online login and transaction passwords on a regular basis. It is also important to ensure that the logged in session is properly signed out.

Bill payment service is a utility service of internet banking. Accordingly, each bank has tie-ups with various utility companies, service providers, insurance companies across the country. Such tie-ups can facilitate online payment of bills of electricity, telephone, mobile phone, credit card, insurance premium bills etc.

In order to make online payment of bills, a simple one-time registration for each bills has to be made and a standing instruction has to be made to make online payment of recurring bills automatically. Most interestingly, the bank usually does not charge customers for such online bill payment. Internet banking has made provision for transfer of any amount of fund from one account to another of the same or any other bank.

Accordingly, customers can send money anywhere in India. The transfer will take place in a day or so, whereas in a traditional method it takes about three to four working days. ICICI Bank recently reported that its online bill payment and fund transfer facility have been most popular online services. Internet banking provides the facility of credit card to its customers.

With internet banking, customers can not only pay their credit card bills online but also gets a loan on their cards.

Not just this, they can also apply for an additional card, request a credit line increase and in case the card is lost, one can report lost card online. Through Internet banking facility to issue Railway pass is also available. Indian Railways has tied up with ICICI bank for this purpose and one can now make railway pass for local trains online. The pass can be delivered to the customer at his doorstep.

Moreover, online booking of e-tickets of Railways, Airlines etc. Through Internet banking, opening a fixed deposit account has become easier. A customer can now open an FD account online through funds transfer. Online banking can also be a great friend for lazy investors. Moreover, investors with interlinked de-mat account and bank account can easily trade in the stock market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their de-mat account.

Besides, some banks provide its customers the facility to purchase mutual funds directly from the online banking system. Nowadays, most leading banks offer both online banking and de-mat account facilities. However, if a customer is having his de-mat account with independent share brokers, then he needs to sign a special form, which will link his two accounts. Through Internet banking, recharging of prepaid phone has also become possible. It is no longer needed to rush to the vendor to recharge prepaid phones as and when talk time runs out.

Here the customer just tops-up his prepaid mobile cards by logging in to Internet banking. Internet banking provides facility of shopping at fingertips. Leading banks have tied-up with various shopping websites. With a range of all kind of products. One can shop online and the payment is also made conveniently through his account.

One can also buy railway and air tickets through Internet banking. In India, a large sophisticated and highly competitive Internet Banking Market is gradually being developed with market pressure and is subjected to the following emerging challenges: Close integration of bank services with web based E-commerce or even disintermediation of service through direct electronic payments E-cash.

What Is A Bank Words: Thus, there are two essential functions which make a financial institution a bank: The former is its unique or most distinctive function. Three things about deposits are noteworthy: A bank is an institution that accepts deposits of money from the public withdraw-able by cheque and used for lending.

The banks act as the intermediary in between the depositors and the borrowers of an economy. In fact the banks channelize the savings of the depositors to the entrepreneurs. This is however the basic function of the banking system. With the globalization of the trading activities during the past few decades, the. Bank of America is one of the leading banks on the territory of the United Stat.

Presently, the bank provides financial and developmental support to the micro, small and. It accepts deposits from the public and pays interest to the public for their deposits and lends this deposit to those who need it and charges interest from them. So bank is a financial institution dealing with money and credit.

It is not possible to develop trade and industry without the help of banks. In 17th century London goldsmiths began. Public sector banks have passed through several stages of existence. The first stage was nationalization of Imperial Bank of India and seven banks of princely states in fifties.

This led to emergence of State Bank of India and its se. In these programs the contribution of Reserve Bank of India cannot be over-emphasized.

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ADVERTISEMENTS: A bank is an institution that accepts deposits of money from the public withdraw-able by cheque and used for lending. Thus, there are two essential functions which make a financial institution a bank: (1) Acceptance of chequable deposits (of money) from the public and ADVERTISEMENTS: (2) Lending.

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